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Reasons Why Start-up Businesses Fail & How To Avoid Them by BrandKing: 11:16am On Oct 19, 2012
10 REASONS WHY START-UP BUSINESSES FAIL
"For entrepreneurs -- especially those just starting out -- businesses succeed as much as they fail. But Statistics have proven that the failure rate for new startups within the first five years is as high as 50 percent.
Of course, real entrepreneurs treat business failure as a milestone on the road to success. They count on learning from their mistakes, and use the experience to move to the next idea. But why not learn from the mistakes of others, without all the pain and suffering?
Below is my list of 10 top startup failure causes -- and how to avoid them:

1.No written plan.
Don’t ever believe that a business plan isn’t worth the effort or not necessary. The discipline of writing down a plan is the best way to make sure you actually understand how to transform your idea into a business.

2.Slim or no revenue model.
Even a non-profit has to generate revenue (or donations) to offset operating costs. If your product is free, or you lose money on every sale, it’s hard to make it up in volume. You may have the solution to world hunger, but if your customers have no money, your business won’t last long.


3.Limited business opportunities.

Not every good idea can become a blockbuster business. Just because you passionately believe that your product or service is great, and everyone needs it, doesn’t mean that everyone will buy it. There is no substitute for market research, to supplement your informal poll of friends and family.

4.Can’t execute.
An idea alone is really worth nothing. It’s all about the execution. If you’re not comfortable making hard decisions and taking risks, you won’t do well in that business.

5.Too much competition.
Having no competitors is a red flag -- it may mean there’s no market -- but finding so many competitors may be a sign that it is also over crowded.

6.No intellectual property.
If you expect to seek investors, or you expect to have a sustainable competitive advantage against giants in your industry, you need to register for patents, trademarks and copyrights, as well as enlist non-compete and non-disclosure agreements to protect trade secrets. Intellectual property is also often the largest element of early-stage company valuations for professional investors.

We have the Copyright and Trade mark commission in Abuja and Lagos where you can secure you r patent or ideas with a minimal cost.

7.An inexperienced team.
In reality, investors fund people, not ideas. They look for people with real experience in the business domain of the startup, and people with real experience running a startup. If this is your first time around, find a partner who has “been there and done that” to balance your passion and bring experience to the team.

8.Underestimating resource requirements.

A major resource is cash funding, but other resources, such as industry contacts and access to marketing channels may be more important for certain products. Having too much cash, not managed wisely, can be just as devastating as too little cash. Don’t quit your day job until new revenue is flowing.


9.Not enough marketing.
Having a slick word-of-mouth marketing strategy isn’t enough to make your product and brand visible in the relentless onslaught of new media out there today. Even viral marketing costs real money and time. Without effective and innovative marketing across the range of media, you won’t have customers -- or a business.

10. Giving in too early.
The most common cause of startup failure is the entrepreneur just gets tired, gives up and shuts down the company. Despite setbacks, many successful entrepreneurs like Steve Jobs and Thomas Edison kept slugging away on their vision until they found success.

www.niromanddoch.com

8 Likes

Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by BrandKing: 8:58am On Oct 23, 2012
Don't be left behind.
Do the right things to compete with the biggest of companies.

You need a Business Proposal
Business Plan
Feasibility Studeies
Customer service Plan
Sales and Marketing Strategy
And many more to succeed in business.




Check Signature below vvv
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Booty4me: 5:22pm On Oct 23, 2012
YEA SECOND TO COMMENT cool ALWAYS SECOND
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by timpaker(m): 5:23pm On Oct 23, 2012
most people are guilty of No. 6
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by ITbomb(m): 5:34pm On Oct 23, 2012
Having more competition is not a threat but u need to find ur niche
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by tonym1(m): 5:34pm On Oct 23, 2012
Individuals not willing to put in the hard work, thinking they start a business today and will make it in a short while.

Lack of commitment
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by greatgod2012(f): 5:41pm On Oct 23, 2012
I think point 5&6 are d major problems of we small scale enterpreneurs.
On point 5, why is it dt when u have a business idea and u start, not too long, u will see pple around u stealing dt idea from u, thereby, becoming ur stiff competitors? Na wa o. May God help us..... Amen.
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Nobody: 5:50pm On Oct 23, 2012
NEPA!!!!!! Number 1 to 10 why businesses fail or not sustainable. sad

2 Likes

Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by expertfingers(m): 5:54pm On Oct 23, 2012
BrandKing:
5.Too much competition.
Having no competitors is a red flag -- it may mean there’s no market -- but finding so many competitors may be a sign that it is also over crowded.

This usually means you are selling a commodity. Commodity is readily available like "pure"(sachet) water.
If the demand does not match the supply, the result is predictable.
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by omiobo: 5:55pm On Oct 23, 2012
Lack of feasibility studies
Lack of investment appraisaL
Inability to carry SWOT analysis of the environment
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by dacool1(m): 5:55pm On Oct 23, 2012
solidbroda: NEPA!!!!!! Number 1 to 10 why businesses fail or not sustainable. sad
grin
solidbroda: NEPA!!!!!! Number 1 to 10 why businesses fail or not sustainable. sad
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by DeGenius3(m): 5:57pm On Oct 23, 2012
really helpful article
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Sophiegurl(f): 6:00pm On Oct 23, 2012
11. Going into a biz u are actually not interested in, but because pple say they are making money from it u dabble into it.
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by ayee001: 6:02pm On Oct 23, 2012
Interesting.
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by ebamma(m): 6:12pm On Oct 23, 2012
all na Bs, my grandpapa no sabi read book but him be millionaire businessman
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Nobody: 6:16pm On Oct 23, 2012
Interesting and helpful!!!

But OP, use either "REASON" or "WHY", don't use the two together. just an observation.no offence pls!
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Nobody: 6:28pm On Oct 23, 2012
Nice post...really enlightening
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Nobody: 6:28pm On Oct 23, 2012
Rudebwoy: Interesting and helpful!!!

But OP, use either "REASON" or "WHY", don't use the two together. just an observation.no offence pls!
yeah,nice point.thats a common gramm. blunder called Tautology...i don't knw y they keep saying it despite the everyday correction.Anyways english no be our mother tongue
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Mankind8(m): 6:34pm On Oct 23, 2012
English na him papa language ne?
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by deribigbe(m): 6:47pm On Oct 23, 2012
1stly have d vision and Register Ur company "U get a good letter head & bizness card"

2nd ; do more of prospecting

3rd ; work in right path & Pray

contact ade for bizness reg.,letter head & bizness card Tel: 07057140885/07082998588
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by lagcity(m): 6:52pm On Oct 23, 2012
ebamma: all na Bs, my grandpapa no sabi read book but him be millionaire businessman

This is not abt book reading. Read all d books u want, if u r selling things ppl don't want or selling at the wrong location, u will FAIL

1 Like

Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by BrandKing: 6:53pm On Oct 23, 2012
deribigbe:
2nd ; do more of prospecting

This is so many people's GREATEST FEAR. But we are here to make it as easy as ABC. Without sales there won't be a business.

Get our Sales and Marketing strategy right in your mail box within 48hours and see your business going places.

Check vvv
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by avalontony(m): 6:58pm On Oct 23, 2012
WHAT ABOUT GOD FACTOR?
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by cowgurl: 7:01pm On Oct 23, 2012
But drafting a business plan ain't easy mahn, is it wrong to give it out to someone who can and pay them for it?
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Nobody: 7:09pm On Oct 23, 2012
avalontony: WHAT ABOUT GOD FACTOR?
very important
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by BrandKing: 7:16pm On Oct 23, 2012
cowgurl: But drafting a business plan ain't easy mahn, is it wrong to give it out to someone who can and pay them for it?

We can get you a professional and comprehensive Business Plan within 14days of providing the relevant details.

Visit : www.niromanddoch.com
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by kenbee(f): 7:17pm On Oct 23, 2012
I think no4 & 9 is where affects most!
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by Dinvictus: 7:23pm On Oct 23, 2012
binger: yeah,nice point.thats a common gramm. blunder called Tautology...i don't knw y they keep saying it despite the everyday correction.Anyways english no be our mother tongue

Rudebwoy: Interesting and helpful!!!

But OP, use either "REASON" or "WHY", don't use the two together. just an observation.no offence pls!


The "Reason why" isn't wrong, i used yo think so too till i checked it up. Check a simple longman or Macmillan dictionary (mostly the ones for secondary student)that give examples and not all those professor type o.
Re: Reasons Why Start-up Businesses Fail & How To Avoid Them by princeonx: 7:31pm On Oct 23, 2012
avalontony: WHAT ABOUT GOD FACTOR?
In Nigeria, Yes. Talk about God in some business places or company here, you get fired!

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